US Aims to Isolate Iran with Economic Pressure Plan
Oil prices declined after two weeks of gains as investors await the release of the US economic isolation plan for Iran, due to be unveiled by Treasury Secretary Scott Bessent on Monday. Brent crude fell to around $93 a barrel, down from its recent surge of over 13% in just two weeks.
The market is focused on the details of the plan, which aims to increase pressure on Tehran's economy. Bessent has stated that Iran's enablers would do well to consider the consequences of sustaining their support for the country. However, experts caution that any attempt to disrupt Iranian oil imports comes with significant execution and reaction risk.
In related news, China's top refiner Sinopec reported a decline in gasoline consumption of almost 8% and diesel use of 12% in the first half of the year due to high prices and increased adoption of electric vehicles. Meanwhile, visible maritime shipping through the Hormuz strait remains curbed, with Iran allowing some Iraqi oil tankers to transit after a request from Baghdad.